SINGAPORE: Palm oil may retest a resistance at 4,501 ringgit per tonne, a break above which could lead to a gain into 4,557-4,649 ringgit range.

The correction triggered by the resistance at 4,557 ringgit is taking the shape of a wedge, which looks like a bullish continuation pattern.

Wave pattern indicates the development of a wave 4, which will be reversed by an upward wave 5. The wedge will be confirmed, when palm oil breaks 4,501 ringgit. It will then suggest a target of 4,649 ringgit.

Palm oil may retest resistance at 4,587 ringgit

Support is at 4,409 ringgit, a break below which may cause a fall to 4,317 ringgit. On the daily chart, palm oil is riding on a wave C which is capable of travelling to 4,878 ringgit, based on the depth of the correction from the July 30 high of 4,498 ringgit.

A break below 4,407 ringgit could cause a fall into 4,239-4,321 ringgit range, which engulfs 4,317 ringgit (hourly chart).

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